CSIR‑NCL Identifies DME As Indigenous Alternative to LPG Amid Supply Concerns

Written by: Akshay ShivalkarUpdated on: 16 Mar 2026, 7:26 pm IST
CSIR‑NCL identifies DME as a potential LPG alternative using a patented catalyst and plans a 2.5‑tonne‑per‑day demo plant within months.
CSIR?NCL Identifies DME As Indigenous Alternative to LPG Amid Supply Concerns
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Researchers at CSIR‑National Chemical Laboratory (CSIR‑NCL) in Pune have identified dimethyl ether (DME) as a promising indigenous alternative to liquefied petroleum gas (LPG). The development comes at a time when India faces heightened concerns over energy security due to supply disruptions linked to tensions in West Asia.

The laboratory stated that its scientists have developed a patented technology that enables efficient conversion of methanol into DME. This advancement aims to support domestic fuel production and reduce dependence on imported fossil energy.

Technology Developed for DME Production

Researchers at the CSIR-National Chemical Laboratory have developed an indigenously designed catalyst that enables efficient conversion of methanol into DME. The patented technology uses locally developed catalytic materials to ensure stable and consistent performance during the conversion process.

The production method operates at around 10 bar pressure. This allows the output to be filled into conventional LPG cylinders and handled through existing LPG infrastructure.

Pilot Scale Achievements and Demonstration Plans

The process has already been scaled up to a pilot capacity of 250 kg per day, demonstrating its technical feasibility. CSIR‑NCL noted that the next step involves building an industrial‑scale demonstration plant in collaboration with a process engineering partner.

The upcoming facility is planned with a capacity of 2.5 tonnes per day and is expected to be completed within six to nine months. This progression marks a key step in assessing the technology's performance under commercial‑like conditions.

Future Commercial Potential and Industry Partnerships

If the demonstration plant meets performance expectations, CSIR‑NCL believes the pathway could support commercial units with capacities ranging between 100 and 500 tonnes per day. The laboratory indicated that it is currently exploring partnerships with oil public sector undertakings and bioenergy firms to expand future production capabilities.

Such collaborations could help accelerate the adoption of DME by leveraging existing national fuel distribution networks. The focus remains on scaling efficiently while maintaining quality and safety standards.

Energy Security and Policy Context

India imports more than 80% of its fossil energy requirements, leaving the country vulnerable to global market fluctuations. Supply chain disruptions from the ongoing crisis in West Asia have contributed to price pressures on LPG, which remains widely used as a domestic cooking fuel.

Its adoption has grown significantly through the Pradhan Mantri Ujjwala Yojana, which aimed to expand access among rural households. The identification of DME as a potential LPG substitute aligns with efforts to strengthen domestic energy resilience through alternative fuels.

Read More: India Faces LPG Shortage Due to Strategic Storage Challenges.

Conclusion

CSIR‑NCL’s identification of DME as an LPG alternative marks a significant scientific and industrial development. The patented catalyst and low‑pressure conversion process demonstrate a practical method for producing DME domestically.

The pilot’s success and the upcoming 2.5‑tonne‑per‑day demonstration plant highlight the project’s steady advancement. With India facing ongoing supply‑related risks, the initiative provides a data‑driven pathway towards diversifying domestic fuel sources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 16, 2026, 1:54 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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